OPmobility (OPM) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue grew 4.7% year-over-year (like-for-like), significantly outperforming the global automotive market by 9.5 points despite a 4.8% decline in automotive production.

• Growth was balanced geographically, with strong momentum in North America, gains in Europe and Asia, and the US as the largest market.

• Outperformance versus the market reached 9.5 points in Q3 and 5.7 points for the first nine months of 2024.

• MSCI ESG rating upgraded to AA, placing among the top 10% of auto suppliers, with additional top ESG ratings (CDP A, Ecovadis Platinum, ISS C+).

• 2024 full-year objectives confirmed, expecting improved operating margin, net result, free cash flow, and net debt versus 2023.

Financial highlights

• Q3 2024 consolidated revenue reached €2,457m, up 2.9% year-over-year (3.9% LFL); economic revenue was €2,746m, up 4.7% LFL.

• 9M 2024 consolidated revenue totaled €7,870m; economic revenue for 9M 2024 was €8,685m, up 3.9% LFL.

• All business segments outperformed automotive production in Q3 and over the first nine months, with modules showing the strongest growth.

• Modules segment posted the highest like-for-like growth at 23% in Q3, driven by North American and European operations.

• Currency effects negatively impacted revenue by €29m (economic) and €23m (consolidated) in Q3 2024.

Outlook and guidance

• 2024 guidance confirmed: continued outperformance of global automotive production and improvement in all financial aggregates versus 2023.

• S&P expects global automotive production to decline 2.4% in 2024, with a 4.0% drop in Q4.

• Company adapting industrial capacities and cost structure to local demand, focusing on geographic diversification and customer mix.

• Margin in H2 2024 is expected to be better than H2 2023, supported by cost control and lower SG&A.

• European production is expected to remain challenging but stable in 2025, with the company aiming to gain market share.